Notice the front cover lists a track "Mary Wanna Go 'Round With Me", which did not appear on this album and only turned up on their final (German and French only) LP.
The outfits, cigars, squaw, etc. are satirizing Native American Indian pop culture, not unlike the way the genre (bubblegum) satirizes pop music conventions. The genre was so intentionally and unashamedly contrived, few in the industry got the joke and dismissed it at face value.
The same can be said for the jacket artwork which in no way is 'depicting' Native Americans; it's just an innocent play on the title slang term. Likewise, Yogi Bear does not attempt to depict actual bears. The term PC is another way of saying hyper-sensitive. In 1969, people were not seeking reasons to be offended.
This was not an attack on the previous two observations, just on the idea of modern audiences re-imagining this record through their own misguided prism.
B1 is not the same song Wayne Fontana and the Mindbenders toook to #1 in '65. Not a cover or title that would pass the PC test today. Note the cigars on the front, another stereo-type.